Explain how an increase in nurses’ salaries affects the demand for medical care and/or supply of...

Explain how an increase in nurses’ salaries affects the demand for medical care and/or supply of medical care. Indicate whether equilibrium price and quantity increase, decrease or stay the same.

Answer the following questions:

a. Explain why price elasticity is typically a negative number while income elasticity is typically a positive number.

b. The demand curve for haircuts at Tanas Hair Design is P = 40 – 0.40Q where Q is the number of cuts per week and P is the price of haircuts. At a price of $15, should Tanas raise the price of the haircuts? Why or why not? Show your work.

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Expert Solution

sorry for wrong order of parts (b part first and then a part )

If you like the work please appreciate thank you !

Rahul Sunny answered 2 months ago

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